The ongoing racket between private equity firms and public pension funds in which they work together to earn billions of dollars in excessive fees at the expense of retirees across the country has been a key theme at Liberty Blitzkrieg this year. My most recent piece on the topic was published last week and titled, Another Pension Scandal – The Crony Love Affair Between North Carolina, Credit Suisse and Erskine Bowles.
Here’s an excerpt:
Like this post?
Donate bitcoins: 35DBUbbAQHTqbDaAc5mAaN6BqwA2AxuE7G
Donate bitcoins: 35DBUbbAQHTqbDaAc5mAaN6BqwA2AxuE7G
Follow me on Twitter.
Yesterday, the Wall Street Journal published an article highlighting the surge in what it calls “ultralong” bonds, defined as having a maturity of more than 30 years. The findings are simply stunning. In what may seem counterintuitive, bond yields at hundred year plus lows in many countries has led major investment firms to rush into ever riskier and longer duration fixed income securities just to earn some income. This has opened the floodgates to governments and corporations looking to lock in low yields on debt they won’t have to pay back for a generation.